Special Licenses and How to Obtain Them
In the USA, business is regulated at the state level. This means there are not many federal laws governing all businesses in the USA. All licensing requirements are regulated by the laws of different states. Some states have very few, like Nevada, while others have many, like New York or New Jersey.
Licenses can be conditionally divided into several categories.
General licenses. Such as the "business license" in Nevada.
Licenses for specific types of activities. For example, insurance licenses, gambling licenses, various financial licenses, licenses for opening pharmacies or medical facilities, hotel licenses, licenses for selling alcohol, and more.
Individual business licenses. There are many types of individual entrepreneurship in the USA. These are various specialists engaged in different types of businesses. From driving heavy trucks, tractors, managing tower cranes, to various specialists like electricians and plumbers, to drillers of artesian wells and car dealers. They are all required to obtain individual licenses for their activities and then, based on the individual license, obtain a company license.
All states have different laws, different requirements for obtaining licenses, different forms for obtaining them, and different procedures and waiting times.
So let’s consider one state, Nevada.
Nevada is a great option for doing business in the United States of America. Here’s why:
- All corporations, as well as Limited Liability Companies (LLCs), are not subject to taxes on profits, shares, and company assets;
- No franchise tax;
- Complete absence of income tax;
- 100% confidentiality of corporate shareholders' activities (this particularly attracts businessmen planning to open their business in Nevada);
- Protection of personal data of corporate directors (all personal data, including name and surname, available to the public, is completely distinct from real information);
- Ability to issue company shares for services and obtain capital in the field of movable and immovable property (relevant only for corporations and limited liability companies);
- Excellent tax benefits for running hotel, exhibition, and gambling businesses.
What is Needed for a Successful Start of Your Business in This State?
You might be surprised, but the necessary and sufficient condition for opening your business in Nevada is an annual business license, which is simply purchased from the state during company registration or annual re-registration.
Until 2005, there was no need for it as long as the business was not operating in the state. Now, entrepreneurial activity is licensed, and the absence of a license for certain businesses (by the way, some types of businesses in Nevada require some type of license) is strictly punished. Remember: “lex, sed lex” (The law is harsh, but it is the law). And the regulatory bodies of the states are by no means “fools” or “simpletons.”
To conduct business activities in Nevada, a general business license is sufficient. It can be considered a kind of "annual tax" for doing business in this state.
However, there are several types of businesses that require separate licensing. In addition, the registration of these activities in the USA is conducted according to a slightly different scheme.
For example, in California, there is no need for a general business license; practically every type of activity falls under licensing. Furthermore, not all of them can be obtained directly in California; licenses are issued at the county level, and some at the city level of business activity. In this regard, Nevada is the most progressive state.
Which Types of Businesses Require Special Licenses?
So, obtaining a special license is strictly necessary if you plan to engage in the following types of activities:
- Opening a gambling business;
- Providing medical services;
- Offering banking and other financial services;
- Conducting construction activities;
- Carrying out special construction works;
- Practicing law;
- Opening a hotel business;
- Weapons sales business;
- Conducting electrical repair or, for example, electrical installation work as one of the special types of business;
- Selling cigarette and alcoholic products.
Everything that in one way or another relates to the life and health of people is subject to licensing.
What Are the Features of Obtaining a Business License?
The first and most important condition for obtaining a license is choosing the right company. Why?
Primarily because the specifics of registering a business, especially one that falls under licensed activities (and many types of activities in Nevada and the USA require special licenses), are so diverse that it can be impossible to manage without a whole team of specialists.
Just the registration of a company in Nevada involves about several steps. Just think about it. For a successful start of any of your activities, it is necessary to:
- Approach the selection of the company wisely.
- Develop the company’s charter.
- Submit it to the Secretary of State.
- Appoint an agent in Nevada.
- Submit a form for company registration.
- Pay all necessary state fees.
- Wait for the processing of the information you submitted to the Secretary of State.
- Receive confirmation regarding the review of your company's registration application.
And the package of documents needed for obtaining a license is even more impressive. Here’s the list:
- Nevada State Filing fee;
- File stamped copy of Articles;
- Articles of incorporation;
- Company Bylaws;
- Stock Certificates;
- Shareholders Minutes;
- Directors Minutes;
- Registered Agent agreement;
- Initial list;
- Annual list;
- Annual minutes.
And this is just the first step. Because after successful registration and obtaining a license for conducting a particular type of activity, you will need to maintain your company's financial reporting.
As you can see, without a qualified business partner, a successful start is virtually impossible. It’s better if your business partner becomes US Business Services Corp. — your first step towards the success of a serious and highly profitable business.